Archive for May, 2019
5 Benefits You Need To Know About VA Loans
To All of Our Veterans – Thank You. Happy Memorial day!
The VA loan is a mortgage loan that is designed to help eligible veterans finance their home with no down payment – guaranteed by the US Department of Veterans Affairs.
5 Benefits You Need To Know About VA Loans
1. No down payment required!
The VA loan is a $0 down payment mortgage – available to Veterans, Service Members and certain military spouses. Conventional loans typically require a down payment that can be as high as 20%. While there is no down payment required, there is a VA Funding Fee. The fee is a governmental fee that is applied to every VA loan. This fee can change based on different circumstances and factors.
2. No Mortgage Insurance!
Private Mortgage Insurance is a type of mortgage insurance that is required for borrowers who finance more than 80% of their home’s value. This is a monthly cost (or one-time upfront premium) that is added to a traditional mortgage loan. Because the VA Loans are government backed, Private Mortgage Insurance is not required by the banks! This is a huge savings for homeowners.
3. Easier to Qualify!
These loans are backed by the government so that means banks assume that there is less risk involved. These loans do not have as many qualification standards as traditional home loans. These loans are easier to obtain and allow for more credit and income flexibility.
4. VA Loan Closing Costs Are Lower!
Another cost saving perk – the VA limits the closing costs lenders can charge to VA loan applicants. The average closing cost of the loan is between 1% – 3% of the loan amount. The percentage can raise to 3% – 5% if the home is less expensive. Your real estate agent can request the seller to cover some closing costs for you – reducing more costs for you.
5. The VA Loan Is Reusable!
These loans are not just a one-time benefit. If you have earned this benefit, you have it for life! There is no limit on the number of times you may use the loan. The VA loan has accessibility to different property types, you could re-use it to buy a house, condo, new-built home, manufactured home, duplex or other types of properties It can even be used to refinance your existing mortgage.
Supporting our veterans with a lender who cares –
Have more questions about the VA loan process? Derek will be there to walk you through the process. He provides expert advice while walking you through every step of the process. You will be a client for life with Derek Beisner.
Derek is available to text on weekends: 1 (949) 637-9939
Read Full Post | Make a Comment ( None so far )Is Seller Financing Right For You?
Seller financing is an agreement in which the seller handles the mortgage process instead of a financial institution. Seller financing cuts out the middleman and some of the red tape that comes with real estate transactions. The seller is the lender in this type of transaction, this allows the buyer to make payments without the hassle of a loan.
Seller financing is a better option in a buyers’ market however this benefits both the buyer and the seller of the home. Here is some quick facts about seller financing!
Pros for the Buyer!
- Faster Closing Process – skip the bank lines. You won’t have to wait on a loan officer, underwriter or legal department to review and approve the loan application
- Saves Money – no bank fees or appraisal costs
- Seller financing lets people who might not be able to secure a mortgage buy a home
- The down payment is based on an agreement between you and the seller
Pros for the Seller!
- Sell quicker – you have the potential and ability to negotiate to sell the property “as is” without making costly repairs
- Investment! Earning money from the lending process
- Retain the title: if the buyer defaults – the seller keeps the down payment and the house – rather than the bank
Take Aways:
- Working with a real estate agent in addition to a real estate attorney is necessary. They will write the sales contract and the promissory note
- Sellers should (and can) run a credit check
- Buyers should offer a 10% down payment
- Don’t forget about your credit score – it is still important and considered in the transaction
Orange County Real Estate Success 